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SUGAR MARKET OVERVIEW The October contract rolled off the board this week with significantly less sugar going to ‘the tape’ than had been expected. With March coming on as the front month at quite a premium to the Oct close, the contract was under pressure through until Friday when the selling seemed to have cleared and the market rallied strongly. In terms of information flow the situation is somewhat more balanced (slightly less bullish) than last week. CS Brazil and Thailand have seen some good rain and...

SUGAR MARKET OVERVIEW: Perhaps due to London Sugar week, volumes were light. The market got long positioning itself for bullish UNICA production numbers. In a typical case of buy the rumour sell the fact, the market got the numbers it was looking for and promptly sold off 70 points. The mood from London was somewhat mixed. There is acknowledgement of the vast supply of stocks sitting both at origin and destination, yet there is a belief that the Thai drought, Brazil miller stress leading to lack of husbandry a...

SUGAR MARKET OVERVIEW Following the volatile October expiry, prices have settled into a small tight range on low volumes. Producers seem happy to sell approaching and over 17c, and we suspect anyone that needed to buy sugar would have taken advantage of the large slide in prices pre expiry. It seems to us, no one is in a hurry to transact business right now. Similarly, we are looking for trade flow surpluses to dominate in the first half of the 2015 and are looking for Mar/May spread to widen out further into c...

SUGAR / CURRENCY MARKET OVERVIEW: March 15 sugar spent last week drifting lower on poor volume sitting comfortably within the 15.51 to 17.25 range we have been in since the beginning of September. These are levels where trade is not getting facilitated: consumers had a chance much lower a few weeks back during the last weeks of the Oct contract, and producers have time on their side given the length of the Mar contract. We are somewhat bearish on prices at these levels following the Brazilian election. AUD has ...